I wanted to share information to the group that may not be awarer of this. This situation I have gone through and have done soem research on. After you open any type of account such as credit cards, loans, mortgages, etc., they will always be labled a new account until 12 months of payments have been achieved. There are soem creditors that report quarterly, once every 3 months, instead of every month. So even though you have paid off an account in January, the creditor may not report it to tehn credit bureaus until the end of March or into the first part of April. The way to deal with that issue is to do a dispute with the credit bureaus thta the balance is reproting inaccurate. Back to the 12 month payment thing. During the first 12 months the reason field for keeping your score down will be new account. After the 12 month period it will no longer eb a factor but you want to keep a longer payment history. Especially on a credit card, you will get a reason field "NOT ENOUGH REVOLVING ACCOUNTS OR EXPERIENCE". It may take as long as 4 years for that reason field to go away. Credit cards impact the fico score the most. I paid off a high baalnce credit card and my score went up 28 points and on a loan thta I only had for 4 months the score went up 3 points. The bottom line is that you want to go as long as possible on an account. Making 3-5 yrs of payments on an auto loan is better than 1-2 years. Yes I do understand that you will pay more interest but not only will your score achieve higher fico points, but future creditors will see that you have a more stable payment history. I was also able to evrify that with my own bank.
